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- **Revenue Growth**: Q1 revenue up 170% YoY to $10.8 million, driven by real estate sales and AUM expansion.
- **Capital Strength**: $53.5 million cash on hand and $50 million GECC revolver provide liquidity for growth.
- **Strategic Partnerships**: $150 million commitment from Kennedy Lewis and $9 million Woodstead investment accelerate platform scaling.
- **Operational Efficiency**: 50 basis point interest rate reduction and debt refinancing lower funding costs.
- **Risk Management**: First Brands bankruptcy impacted GECC NAV, but balance sheet remains resilient.
- **Shareholder Returns**: 15.2% YTD private credit returns and $10.9 million share buybacks enhance value.

**【CEO Summary Section】**
- **Strategic Capital Raising**: Secured $250 million in debt and equity capital, including $28 million raised by GECC through private placements and at-the-market programs.
- **Partnership Expansion**: Kennedy Lewis Investment Management committed $150 million to Monomoy REIT and purchased 1.3 million GEG shares, while Woodstead Value Fund invested $9 million in GEG equity.
- **AUM Growth**: Fee-paying AUM increased 9% YoY to $594 million, with Monomoy REIT deploying $13 million in new property acquisitions and a land parcel expansion.
- **Operational Efficiency**: Reduced GECC revolver interest rate by 50 basis points and refinanced $40 million debt at lower rates, improving cash flow.
- **Performance Highlights**: Private credit strategy returned 15.2% YTD, and CoreWeave investment recouped 100% of initial capital despite stock price volatility.
- **Share Repurchases**: Repurchased 5.6 million shares ($10.9 million) under a $25 million program, with $14.1 million remaining.

**【CFO Financial Commentary】**
- **Revenue Performance**: Q1 revenue $10.8 million (vs. $4 million prior year), driven by $7.4 million from Monomoy BTS property sales.
- **Financial Results**: Net loss of $7.9 million due to unrealized losses on GECC and CoreWeave investments; adjusted EBITDA loss of $0.5 million (vs. $1.3 million gain prior year).
- **Liquidity**: $53.5 million cash on hand, supporting capital deployment and strategic initiatives.
- **Valuation Metrics**: Book value per share $2.30, reflecting strong balance sheet positioning.

**【Q&A Key Highlights】**
- **Overhead Structure**: CEO emphasized fixed costs are largely in place, with focus on scaling AUM to drive operating leverage.
- **Monomoy REIT Transparency**: REIT operates as a private entity with 150+ industrial properties, largest tenant United Rentals; plans to evaluate public listing as scale grows.
- **GECC Challenges**: Q1 impact from First Brands bankruptcy reduced NAV, but capital structure remains strong with $50 million revolver capacity.
- **Growth Catalysts**: BTS development pipeline and in-house construction services enable turnkey solutions, enhancing value capture across property lifecycle.

Great Elm Group, Inc. (GEG) Q1 2026 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

GEG

GEG fundamentals

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